Payback period and net present value, Financial Accounting

Payback Period and Net Present Value

XYZ Software, Inc., has the following mutually exclusive projects.

Year

Project A

Project B

0

 $

-9,960   

 $

-10,400   

1

 

6,800   

 

5,800   

2

 

4,100   

 

2,900   

3

 

2,700   

 

6,900   







Requirement 1:

(a) What is the payback period for Project A?

  Payback period                                 years

(b) What is the payback period for Project B? (Round your answer to 3 decimal places. (e.g., 32.16))

  Payback period                                 years

Requirement 2:

(a) What is the NPV for Project A assuming a discount rate of 14 percent? (Negative amount should be indicated by a minus sign. Do not include the dollar sign ($).

  Net present value         $

(b) What is the NPV for Project B assuming a discount rate of 14 percent? (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.

  Net present value         $

Posted Date: 2/15/2013 3:06:33 AM | Location : United States







Related Discussions:- Payback period and net present value, Assignment Help, Ask Question on Payback period and net present value, Get Answer, Expert's Help, Payback period and net present value Discussions

Write discussion on Payback period and net present value
Your posts are moderated
Related Questions
Calculation of Profitability ratios  -                     2008 2009 2010 G Net Sal

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investm

Q. What is Inheritance in Gross income? Inheritance - As distinguished from a BEQUEST or devise, an inheritance is property attained through laws of descent and distribution fr

Function to return the phase of a complex number 1. What is Annuity kind of cash flow? 2. What do understand by Portfolio risk? 3. What do you understand by 'Loan Am

The Gladys Corporation buys office equipment costing $426,000 on May 12, 2013. In 2015, new and improved models of the equipment make it obsolete, and Gladys sells the old equipmen

how to solve the question income statements

Below given th einformation of the stock calculate the required return of the stock. Dividend = $4.50 every year Current sales price of stock = $ 79.85 per share Formul

3:Barnes Baskets, Inc. (BB) currently has zero debt. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero growth company. BB's current cost of equity is

After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership indicate the following: Cash $75,000 Non cash 105,000 Liabilit